More TFSA Help.
What's a TFSA?
A TFSA, or Tax-Free Savings Account is a government program that allows those 18 or over to save money tax-free. You won’t get taxed on the interest made on your investment, even when it’s withdrawn.
It really is tax-free.
Whether your TFSA is earning interest, dividends or capital gains, you won’t be taxed, even when the investment is withdrawn. This tax-free compound growth means that your money grows more quickly inside a TFSA than in a taxable account. Investment income and capital gains earned in a TFSA are not taxed, even when you withdraw money from the account.
Income earned and withdrawals made from a TFSA do not affect your eligibility for federal tax credits or income-tested benefits such as the Canada Child Tax Benefit, Old Age Security (OAS) or the Guaranteed Income Supplement (GIS).
Additional information is available on the Canada Revenue Agency's website.
Key features:
- Investment income earned in a TFSA plan, including capital gains, will not be taxed, even when withdrawn
- Unused TFSA contribution room can be carried forward to future years
- There is no maximum age limit to open or hold a TFSA
- There's no deadline for your contributions
TFSA FAQs
| Years | TFSA Annual Limit | Cumulative Total |
|---|---|---|
|
2009-2012 |
$5,000 |
$20,000 |
|
2013 |
$5,500 |
$25,500 |
|
2014 |
$5,500 |
$31,000 |
|
2015 |
$10,000 |
$41,000 |
|
2016 |
$5,500 |
$46,500 |
|
2017 |
$5,500 |
$52,000 |
|
2018 |
$5,500 |
$57,500 |
|
2019 |
$6,000 |
$63,500 |
|
2020 |
$6,000 |
$69,500 |
| TFSA | RRSP | |
|---|---|---|
| Do contributions reduce your taxable income? | No | Yes |
| Are these funds subject to income tax when withdrawn? | No | Yes |
| Is interest earned on these investments tax sheltered? | Yes | Yes |
| Can these funds be withdrawn anytime, for any reason, without being taxed? | Yes | No |
Still can't decide between a TFSA and an RRSP? We can help.
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